Assignment #1:  (Week 4)

 

Purpose: 

 

When setting up a business, it is necessary to choose between the different business forms (sole proprietorship, partnership, LLC, corporation). The decision made about the business form will depend on the type of business and preference. In this case scenario, you are provided with three options for growth for Gerald Kaye Necklet business. You will select the best business option for growth. Then, you will look at different business forms and determine the advantages and disadvantages of each business form. Using the information gathered, you will then assess the best business form for Gerald Kaye's business. Lastly, you will discuss the business forms not selected for Kaye.

 

 

Outcomes Met With This Assignment:

 

• discuss the financial, economic, regulatory, sociopolitical, and technological factors as they relate to a dynamic business environment
• identify the critical business functions and how they interact in order to position the organization to be effective in the current business environment
• explain the importance of the integration of individuals and systems to organizational effectiveness

Instructions:

 

This assignment is the first of two assignments.  You will read a case scenario related to business forms.  In completing the assignment, you will analyze a case study scenario and apply the concepts learned in week 3 by answering a series of required elements. You will complete the assignment by not asking questions but by responding to each required element thoroughly and accurately answering in paragraph and sentence format without bulleting. 

 

 

NOTE:  All submitted work is to be your original work. You may not use any work from another student, the Internet or an online clearinghouse. You are expected to understand the Academic Dishonesty and Plagiarism Policy, and know that it is your responsibility to learn about instructor and general academic expectations with regard to proper citation of sources as specified in the APA Publication Manual, 6th Ed. (Students are held accountable for in-text citations and an associated reference list only). Serious sanctions can result from violations of any type of the Academic Dishonesty and Plagiarism including a zero on an assignment, a zero for the course or dismissal from the university.

 

Step 1: Preparation for Writing the Assignment

 

 

Before you begin writing the paper, you will read the following requirements that will help you meet the writing and APA requirements. Not reading this information will lead to a lower grade;

• Review "How to Analyze a Case Study" under Week 4 Content. You are expected to use the facts from the case scenario focusing on using this information to determine opportunities and solve problems. 
• Read the grading rubric for the assignment. Use the grading rubric while writing the paper to ensure all requirements are met that will lead to the highest possible grade.
• In writing this assignment, you will read and following these tasks:
• Third person writing is required.  Third person means that there are no words such as "I, me, my, we, or us" (first person writing), nor is there use of "you or your" (second person writing).  If uncertain how to write in the third person, view this link:  http://www.quickanddirtytips.com/education/grammar/first-second-and-third-person.
• Contractions are not used in business writing, so you are expected NOT to use contractions in writing this assignment. 
• You are expected to paraphrase and NOT use direct quotes. You are expected to paraphrase, which can be learned by reviewing this link:   https://writing.wisc.edu/Handbook/QPA_paraphrase2.html.
• You are responsible for APA only for in-text citations and a reference list. 
• You are expected to use the facts from the case scenario paired with the weekly courses readings to develop the analysis and support the reasoning.  No more than two (2) external resources can be used in completing the assignment. The expectation is that you provide a robust use of the course readings. No other books besides the course eBook can be used. When using a source document, the expectation is that the information is cited and referenced with a page or paragraph number.  Note that a reference within a reference list cannot exist without an associated in-text citation and vice versa.  View "How to Cite the Saylor eBook" Under Week 1 Content to learn how to cite and reference the course eBook- Exploring Business.

 

Step 2: How to Set Up the Paper

 

Create a Word or Rich Text Format (RTF) document that is double-spaced, 12-point font.  The final product will be between 4-6 pages in length excluding the title page and reference page. You may not exceed six (6) pages so it is important to write clearly and concisely.

 

Follow this format. Consider making an outline to ensure the correct headings are in place and to keep you organize the paper.

 

• Title page with title, your name, the course, the instructor's name; date
• Introduction - One paragraph
• Best Business Option
• Advantages and Disadvantages of the Different Business Forms
• Best Business Form for the Chosen Option
• Other Business Form 
• Summary paragraph - One paragraph

 

Step 3: Read the following Case Scenario:

 

Gerald Kaye is a sole proprietor of an online jewelry business. He has invented a series of designs that revolve around a product called a necklet. The product is unique in that it can serve as a bracelet or a necklace. Kaye patented his invention and feels strongly that he retains ownership of his creations. The business has caught on and Kaye is considering starting a storefront.  He knows to do so he will need a loan or obtain investment capital to make the expansion work. 

 

The following week, several individuals approached Gerald with offers for his business, making it difficult for him to make a decision. After much though, Gerald put on paper the following options from which he will choose. He also has decided to keep an open mind when assessing each option.

 

Option 1:

• Jude Jones, who owns her own storefront, approached Gerald. Jude is looking to retire in a few years. She has an existing storefront business with significant inventory. She has proposed to Kaye that he come into the business as a partner. He would bring his online business and the jewelry designs. In return, Jude would offer the existing inventory and storefront. Profits would be split 50/50 and Kaye could maintain his ownership of the necklet patent. When Jones decides to retire, Kaye would have first right to buy her interest for half the current value of the business. 

 

Option 2: 

• Franchise R US, a huge consulting firm for individuals interested in matching investors with products for franchising, has matched Kaye with an investor to create a franchise line of necklet kiosks in malls around the country and abroad. Kaye would have to turn over his patent to the investor who would invest $250,000 in the marketing of the franchise line in exchange for 50% of the licensing profits for the first three years and 40% of the profits each year thereafter. The investor will return the patent to Kaye upon sale of the business or at the time he has recouped the original investment plus 7.5% interest, whichever comes first.

 

 

Option 3:

• Kaye could pursue a bank loan to expand his business on his own as a sole proprietorship. 

 

 

 

Step 4: Write the Introduction

 

Create the introductory paragraph.  The introductory paragraph is the first paragraph of the paper and tells a reader the main points covered in the paper. To help you know how to write an introduction, view this website to learn how to write an introductory paragraph:  http://www.writing.ucsb.edu/faculty/donelan/intro.html

 

 

Step 5: Answer the following required elements.

 

• You are to consider the different business forms and then select the option (option 1, 2, or 3) that is the best fit for Kaye to pursue;  
• Create a table that identifies the advantages and disadvantages of each business form (Sole proprietorship, General partnership, Limited Liability partnership (LLP), Limited Liability Corporation (LLC) & corporation); 

These additional resources will be helpful:

7 Advantages and Disadvantages of a Limited Liability Partnership

Advantages and Disadvantages of Different Business Entities      

• Select the best business form for the chosen option and explain why this business form was selected and why it is the best business form for the option;
• Why were the other business forms not selected?

  

Step 6: Write the summary paragraph

 

Write the summary paragraph. A summary paragraph restates the main topics of the paper.  Make sure to leave a reader with a sense that the paper is complete.  The summary paragraph is the last paragraph of a paper and does not need a heading.